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“If the energy surplus ratio continues to decline as it has been, the economy as we know...

“If the energy surplus ratio continues to decline as it has been, the economy as we know it is finished,” writes Tim Morgan of Tullett Perbon in the most pessimistic piece of economic research you're likely to read this year. “In 1990 it took one unit of energy to extract 40. Today the ratio is barely 17:1 and it is set to pass the critical 10:1 point in the coming decade."
Comments (5)
  • markjones12
    , contributor
    Comments (23) | Send Message
     
    This is referred to as Peak Energy, and as far as I can research, is true. We are not running out of energy, but every marginal unit will continue to be more expensive to produce.
    22 Jan 2013, 07:31 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    Fracking is done for a reason - oil is more difficult to get. Also, off shore drilling is a boom business for that reason. The complete peak oil argument revisited in above paragraph.
    22 Jan 2013, 07:33 PM Reply Like
  • petten
    , contributor
    Comments (128) | Send Message
     
    Go nuclear!
    22 Jan 2013, 07:35 PM Reply Like
  • steven russo
    , contributor
    Comments (164) | Send Message
     
    Most of the energies we use are finite and yes when theres less supply and demand continues to climb we will see much higher prices and it could get to the point where it affects our economy in a negative way. Hmmm anybody else see what China is doing with solar power?
    22 Jan 2013, 07:37 PM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    Once again, an analyst watching the numbers while missing the big picture....
    23 Jan 2013, 07:27 AM Reply Like
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